Electricity Distribution Concession
Conducting business activity in Poland within the scope of electricity distribution entails the necessity to obtain e lectricity distribution concession . This type of concession covers in particular selling the electricity to third parties on the territory of Poland. The process of electricity distribution is realised by energy transfer from distributor to the customers through electricity distribution networks . The concession granting procedure is regulated by Polish Act on Energy Law.
Concession Granting Authority
The electricity distribution concession is granted by the President of Polish Energy Regulatory Authority . The concession granting proceedings is initiated upon previous motion submitted by interested entity.
Each entity, which is going to participate in electricity distribution market is obliged to fulfil statutory requirements. It means that the applicant:
- has its seat placed alternatively in Poland or any other Member State of EU, Swiss Confederation, EFTA member state or in a country which is a party to Agreement on the European Economic Area
- has financial resources and technical capabilities which will guarantee proper performance of concession
- ensures the employment of people with relevant qualifications required to proper performance of work with networks operation, equipment and installations
- has obtained a decision on land development conditions or decision on the location of an investment
- does not have any tax arrears.
The electricity distribution concession cannot be granted to entity which:
- is subjected to bankruptcy or liquidation proceedings,
- has infringed the provisions of the Act on Energy Law and lost other concession or licence within last 3 years,
- was removed from register on regulated activity within the last 3 years due to particular negligence and lack of reaction for requests from concession granting authority
- who has been convicted for criminal offences related to business activity indicated in Act on Energy Law.
Regardless the above, the President of Energy Regulatory Office may refuse granting energy distribution concession or arbitrarily limits it to particular scope due to threat to State’s defence or to citizens.
The documentation, which shall be submitted to concession granting authority, is quite extensive. There are several documents upon which the President of Energy Regulatory Office will be able to fuly assess applicant’s ability to proper performance of concession . One of the most crucial are inter alia :
- information on completion of construction and commencement of operation,
- document, which confirms legal title to particulat objects and installations,
- characteristics of electricity consumers connected to networks,
- confirmation on obtaining Polish Tax Identification Number (NIP),
- documents which confirm the financial status of applicant, which secures proper execution of concession,
- zoning documentation,
- several entrepreneur’s statements (e.g. that entrepreneur has not been reported for bankruptcy or liquidation),
- financial statements,
- bank account confirmation, and
- applicant’s articles of association.
The great majority of abovementioned documents shall be submitted as originals.
Electricity distribution concession is granted for a fixed period, not shorter than 10 years and not longer than 50 year, unless the entrepreneur requests a concession for a shorter period of time. The entrepreneur may submit the motion for lengthen the concession not later that 18 months before expiration date of current concession.
Regardless the above, the President of Polish Energy Regulatory Office may order the energy entrepreneur to continue the operation on the electricity distribution market despite the fact of expiration the concession, for a period not longer than two years if the public interest requires such action.
Should you have any questions regarding electricity distribution concession , please contact with our lawyers on [email protected]